The late presentation of the draft state budget law eliminated the possibility of proposing better solutions for managing the public funds and this led to the adoption of decisions that are not really in the interests of the citizens, representatives of the party “Coalition for Unity and Welfare” (CUB) stated in a news conference.
CUB chairman Igor Munteanu noted that budget transparency is a key element.
“The budget law is the main document of the country. This year, the document appeared in non-transparent conditions. The draft budget was published only two hours before it was approved by the Government and I presume many of the ministers didn’t manage to look through this document. In only two days, it was adopted by Parliament. These aspects hide big risks to the budgetary process and the country’s financial stability. Undoubtedly, each element of this document will have an impact on our citizens. We have hundreds or even thousands of companies that close down businesses or transfer them to Romania and fire the people,” stated Igor Munteanu.
CUB member Sveatoslav Mihalache, expert in finances and banks, mentioned some of the mistakes made by the current government when adopting the 2023 state budget law, as he considers.
“The pay raises are necessary, but the way in which these are ensured generates serious doubts. This way, the government raises by 30% or even more the salaries of particular categories of people who are well paid, such as MPs, judges, prosecutors and other functionaries, but eliminates the teachers and doctors whose pays will be raised by reducing other costs associated with the maintaining and functioning of institutions. The decision to increase the minimum official salary to 4,000 lei is welcome, but it should have been taken together with the local public authorities. The local public authorities will have to cope alone, without being financed with state budget funds. The smaller is the locality, the greater will be the financial pressure on the locality and on the citizens who live in this locality,” said Sveatoslav Mihalache.
According to him, the decision to increase the excise duties on taboo and alcohol products at a higher pace than it was agreed with the EU, out of the wish to collect larger amounts as taxes in 2023, implies risks, such as the development of the underground economy, smuggling in cigarettes and alcohol from the Transnistrian region. Also, the decision to increase the taxes on interest from savings accounts is not in the interests of the citizens.
“This decision will make the people decide against depositing money in banks and they will keep the money at home. This is a blow to pensioners too as these keep their savings at commercial banks,” stated Mihalache.
He noted that fiscal transparency is a key element and society should know why some of the categories of businesses enjoy tax concessions.
“These tax concessions rise to almost 20 billion lei. We consider that these concessions are not at all useful and necessary. We propose three strategic directions. It goes to the free economic zones where these concessions should be further provided, as they should be in the information technology and energy sectors. To diminish the population’s costs and to ensure energy security, we suggest eliminating VAT and all the taxes on alternative energy equipment. Let’s increase the VAT and taxes on all the products that consume energy and are below class A,” said the expert.
Sveatoslav Mihalache noted the government decided to increase the fiscal burden instated of increasing the fiscal basis and exerts greater pressure on honest business entities.
“In 2022, consumption grew by 25%, but the collected amounts rose by only 18%. We can deduce that there is tax evasion and smuggling flourishes. Instead of combating this evil, the authorities increase the burden on businesses. The business entities that work honestly, without double-entry bookkeeping, are penalized by higher taxes,” stated Mihalache.
Ludmila Armaşu, pro-rector of the State Teacher Training University “Ion Creangă”, said the draft budgetary and fiscal policy for 2023 shows once again that education is not a priority for the authorities.
“It is paradoxical that they have the biggest expectations of teachers, who are urged to become involved in all the changes, but the attitude to them is regrettable. We have a shortage of 2,000 teachers, but the authorities make statements only and cannot find money for decent salaries. It’s surprising that the authorities cannot find money for the 13th salary, for increasing the salary of lecturers by at least 1,300 lei as in the case of other public sector employees, but find money for developing an electronic university admission system,” stated Armașu, calling on the authorities to take into account the good international practices and experiences that proved their viability.
